Previous: USD/CHF Has a Swing Projection to 0.9620 (8/5)

USD/CHF 1H Chart 8/7/2012 9:40PM EDT

In the previous USD/CHF update, I noted that the pair was bearish and had a swing projection to 0.9620, with resistance at the previous support area of 0.9740-0.9750. So far this week, the market indeed found resistance at 0.9740 but has also flattened out, ranging with that resistance and support at 0.9655.

So far during the 8/7 session, the market has bounced off the support, but found resistance at the 0.9705 previous resistance pivot during the start of the 8/8 Asian session. A hold below 0.97 going into the 8/8 European session would be seen as a bearish bias, and the 0.9655 level is likely to be tested again.

The RSI reading just tagged 60 and is turning down, suggesting that the bearish momentum bias is preserved.

A range-breakout projection target the 0.9570 level (using the width of the range). But we do have a rising trendline (going back to June 20) near 0.9620. The swing projection was also to this area.

A break above  during the Asian-European session opens up the 0.9740 resistance. Above that, USD/CHF is exposed toward the recent declining trendline at about the 0.9840-0.9850 area.

USD/CHF 4H Chart 8/7/2012 9:47PM EDT

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.